The prestigious American investment bank, JPMorgan, now allows all its clients and investors to access cryptocurrencies, including retail investors, if they wish.
A person familiar with JPMorgan will said told Business Insider that the investment bank is expanding its financial products in cryptocurrencies to a broader group of clients and investors. According to the source, JPMorgan retail investors now have the opportunity to gain exposure to investment in cryptocurrencies and digital assets, using the products and services offered by the entity.
Previously, exposure to crypto assets through JPMorgan was reserved for the entity’s wealthy clients and investors, who manage large capitals and who can take the risk of volatility that exists when trading cryptocurrencies. But now, the source clarified that JPMorgan has given its financial advisers the green light to execute the crypto trades requested by investors and retail clients. However, the entity’s advisors will not be able to offer or promote the cryptocurrency products themselves, but rather must wait for interested investors to apply directly to the bank.
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New perspectives on crypto
JPMorgan, which maintained a rather unfavorable and reserved stance towards cryptocurrencies for years, is now forced to offer services with these digital assets to respond to the massive demand that exists today. In March, the bank revealed its plans to launch a “basket” or basket of shares related to companies that invest directly in crypto assets, such as MicroStrategy and Square, to meet the growing needs of its clients.
Likewise, at the beginning of this month, its analysts indicated that Ethereum 2.0the blockchain POS from ethereumwould drive crypto adoption for its consensus and savings mechanism known as stake.
JPMorgan’s change in attitude is opening the doors of the crypto industry to a greater number of investors and has created great expectations in the digital markets, marking a milestone in the history of this entity. In 2017, its CEO Jamie Dimon said he would fire any employee who traded cryptocurrencies. Now, although he still does not agree with cryptocurrencies, he must comply with the demands and demands of his clients.
Expanding opportunities in cryptocurrencies
JPMorgan is the first large bank in the United States, with more than 630,000 million dollars under its management, which is expanding investment opportunities in cryptocurrencies to all types of clients, beyond the wealthiest. According to the report, now the investment bank’s wealth management clients and retail clients can also allocate part of their funds and capital to investment in cryptocurrencies and digital assets.
JPMorgan has given its financial advisors the green light to give all of its wealth management clients access to cryptocurrency funds, becoming the first major US bank to do so.reported Business Insider.
JPMorgan retail investors can access crypto through four digital asset manager products Grayscale Investments and a firm investment product Osprey Funds. The new services have been available since July 19, Insider reported. Likewise, investors managed by JPMorgan Advisors and wealthy clients of the private bank can also access Grayscale and Osprey crypto investment products through JPMorgan.
Bitcoin, a new asset class
Recently, Mary Callahan ErdoesCEO of JPMorgan Asset & Wealth Management, a subsidiary of JPMorgan, recognized that most of its clients are seeing cryptocurrencies, especially bitcoin, as a new investment asset class. Erdoes indicated that JPMorgan’s mission is to advise and guide investors on where to place their money, but if they decide to invest it in bitcoin or another cryptocurrency on the market, it is an entirely personal decision.
On the other hand, JPmorgan analysts question the effectiveness of cryptocurrency as a means of exchanging value. Until now, bitcoin has been adopted as a store of value currency and not as a medium of exchange, so most of the BTC mined and in circulation on the market do not move frequently, and remain for months and years static in the market. the purses of their owners.
JPMorgan made this clarification regarding the problems that the Bitcoin Law of El Salvador can bring to the cryptocurrency. An excessive demand for the current use of bitcoin could create liquidity problems for the cryptocurrency.
7% recovery
Regarding the price of this cryptocurrency, the bank’s analysts consider that a more significant drop in value in the short term is still possible, although in the long term, bitcoin could reach 140,000 dollars per unit.
At press time, BTC is trading on the markets with a value of $32,300 and its market capitalization exceeds 606,900 million dollars. The cryptocurrency has rallied more than 7% since falling to $29,000 on Tuesday.
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